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The Weekend Neos Kosmos : 07 July 2018
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22 THE WEEKEND NEOS KOSMOS | SATURDAY 7 JULY 2018 DIGITAL.NEOSKOSMOS.COM FYROM moves on with parliament vote The country is set to fulfil its obligations, following its agreement with Greece The government of Zoran Zaev in FYROM is preparing to have a secondary vote in Parliament to ratify their agreement with Greece, after the original vote had been vetoed by the country's president Gjorge Ivanov. Mr Ivanov refused to agree to the deal, stating that it would make the FYROM "subjugated and dependent upon another" and also threatened anyone who signed it with a five-year imprisonment. However, should the agreement receive the majority vote for a second time around, he will be forced to sign it, as per the laws of the country. The original vote had 69 out of 120 in favour, from the necessary 61. Meanwhile, Mr Zaev is also being said to hold a referendum on the matter. The date of this referendum was previously speculated by the media in the country to be either 9 or 16 September. Although a later statement from Mr Zaev confirmed that it will most likely take place between late September and early October, considering the question that his people will be asked but also the nature of the referendum itself (whether it will be decisive or more of a consultation) are Moscovici: ‘Greece is now a normal country in the eurozone’ Greek opposition leader Kyriakos Mitsotakis argues otherwise Both Zaev and Tsipras are planning to move ahead with the Prespes agreement. PHOTO: AAP VIA EPA/YANNIS KOLESIDIS two issues that have not yet been decided. At the same time, Greece's parliament is preparing for its own vote to ratify the Prespes agreement. In a statement released by Prime Minister Alexis Tsipras' press office, it was pointed out that the country will only support FYROM's NATO bid once the agreement has been solidified in both nations, and asked for the largest possible support in the vote. "The government will comply to the letter to all provisions of the Prespes agreement. Subsequently, the Greek parliament will table the agreement for ratification. Only after ratification by both sides does the agreement come into effect. The same applies to FYROM's NATO accession protocol, which will be drafted only if FYROM complies with the above terms." Number of asylum seekers continues to rise in Greece Nearly 18,000 had arrived on the islands up until 3 July, with over half on the island of Lesvos Close to 18,000 refugees and migrants are documented to have arrived on the islands of Greece up until 3 July with over half located on the island of Lesvos (9,472), with Samos accommodating 3,887, and Chios (2,054) and Kos (1,199). These numbers were made public a few days after Prime Minister Alexis Tsipras announced that the four islands that are dealing with the heaviest influx of asylum seekers will not have their Value Added Tax (VAT) raised by 30 per cent in line with the rest of the country as had been decided at the EU Brussels summit last month. Mr Tsipras stated that this break will remain for the overcrowded islands "for as long as the refugee crisis remains". Many, however, are claiming that this is an attempt to raise appeal, with elections in Greece coming up as soon as October 2019. In a common statement, the mayors of the aforementioned islands (with the inclusion of Leros) pointed out that this isn't a solution. "We consider that the interpretation that the lower VAT rate has been given in exchange for the creation of new facilities is unacceptable. Our islands cannot handle more migrants or refugees and this must be understood. The reduction in numbers is a priority for all the northern Aegean." The islands have become overpopulated since migrants fled their own countries, seeking asylum from war. They have since been unable to move on to the rest of Europe as ‘swap deals’ are still underway. European Commissioner for Financial Affairs Pierre Moscovici met with Greece's Prime Minister Alexis Tsipras on Tuesday as part of his twoday visit to Athens to discuss the country's exit from the Troika’s financial supervision. "Greece is now a normal country in the eurozone. There is no other adjustment program for Greece, there can't be and there will not be," Moscovici stated during the meeting at the Maximos Mansion. "I have always opposed the excesses of austerity and those who wanted punitive action against Greece. Greece has always declared its commitment to the Euro area and I want to pay tribute to the courage of the Greek people and the parliament which held up the difficult and necessary initiatives," he noted, adding that the end of the program is a victory for Greece and the eurozone. "As of 21 June, Greece is back on its feet and is making new steps as an integral part of the EU, and the EU will always be by your side, as we have been so far," Moscovici added, stressing that the time has come for Greece to demonstrate how sioner said that there won't be a fourth program of any kind, stating that the International Monetary Fund (IMF), the EU and the European Central Bank won't be coming back to Athens to oversee its finances. Moscovici's statements were not received well by everyone. Greece's opposition leader European Commissioner for Economic and Financial Affairs Pierre Moscovici, right, shakes hands with Greek Prime Minister Alexis Tsipras. PHOTO: AAP VIA AP/PETROS GIANNAKOURIS fast it can achieve solid and strong growth, as well as social justice. Mr Tsipras agreed, welcoming the statement while he promised his government will ensure a smooth transition. "The most important thing for Greece is that from now on, elected governments will have a right to select the means of achieving the tar- gets they set," the Greek PM said in a statement that was followed by Mr Moscovici's commitment that the European Commission will be at Greece's side "as a partner and a friend in a eurozone that needs to be strengthened and united even further." Moreover, during his address in parliament, calling Greece "a normal country in the eurozone" the commis- Kyriakos Mitsotakis, argued that "there will be no clear exit in August, as no other country that went under Troika supervision had to be subjected to future commitments, further measures and continuous supervision". The leader of the New Democracy party also expressed his fears of a "fourth concealed memorandum" and his lack of trust towards the Syriza-ANEL government. Finally, Mr Mitsotakis suggested Mr Moscovici should be more careful in his next public speech, asking him to show respect to the sacrifices Greek people have had to endure, the unnecessary austerity measures that have been imposed on them over the past three years, not to mention what the Tsipras-Kammenos coalition has already signed for Greece's immediate future. Bank of Greece deems long-term budget surplus targets unfeasible Analysis warns they pose ‘the greatest risk’ to debt sustainability Last month's final review of Greece's bailout programconcluded with a debt deal, which according to Prime Minister Alexis Tsipras represents a "historic" agreement for Greece to become "a normal country" once again. But a Bank of Greece (BoG) analysis suggests that long-term economic recovery is by no means guaranteed. The bank's governor, Yiannis Stournaras, met with parliament speaker Nikos Voutsis on Monday morning, to hand over the BoG monetary policy report. Its submission comes amidst a recent feud between Stournaras and the coalition government, with Greece's top central banker having long called for an extra credit line from eurozone lenders in preparation for the country's exit from the bailout program in August. According to the BoG analysis, relief measures agreed with creditors at last month's Eurogroup meeting can be expected to contribute to a smooth return to the markets, and helps render the country's debt load sustainable in the medium term. However, the report stated that the primary budget surplus targets the Tsipras government has committed to achieve during the period 2023-2060 are unfeasible. "No other country in the world, with the possible exception of oil-producing countries, has ever achieved such large primary surpluses over such a protracted period of time. This assumption therefore constitutes the greatest risk in the analysis of long-term debt sustainability," the central bank notes in its analyis. The debt agreement compels Greece to run primary budget surpluses of 3.5 per cent of GDP until 2022, and 2.2 per cent of GDP on average from then onwards until 2060. The report points to the country's sustainable return to international sovereign bond markets as ‘the ultimate and definitive proof’ of economic recovery and warns that long-term debt sustainability requires maintaining fiscal and reform efforts, as well as further debt relief measures. The assumption that high primary budget surpluses can be achieved, it also said, serve as a reminder that past policy mistakes responsible for the country's debt will continue taking their toll on future generations. The report estimates a positive growth outlook and achievement of fiscal targets for 2018 as a whole, but it also cited uncertainty for future growth prospects, due to a number of challenges threatening the transition to a "sustainable extrovert growth model", among others high unemployment rates, collapse of investment and lareg stock of non-performing loans. PHOTO: REUTERS/COSTAS BALTAS
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